Chinese Pipeline Construction Firm Secures 650-km Order in Nigeria

The China Petroleum Group Engineering Co., Ltd (CPGE) has secured a major contract in Nigeria from the Nigerian National Petroleum Corporation (NNPC) for the construction of a 650-km, 40 inch gas pipeline from Ajaokuta in Kogi State to Kan.

In view of the nation's critical power shortage, the pressure is on to complete the pipeline as soon as possible in order for the gas to be delivered to gas - fired power plants.

Indeed, the current operational challenges experienced in the nation’s power sector could limit gas generation companies (Gencos) from increasing their output to 6,000 megawatts (MW) of electricity by the second quarter of 2017.

According to Maikantu Baru, Managing Director of the NNPC, the Gencos would be able to increase their outputs due to improved gas supplies to them, once the pipeline is completed. However, the operational inadequacies of the Transmission Company of Nigeria (TCN) and electricity distribution companies (Discos) could prevent the nation from achieving this.